REC Ltd Offloads Two Power Transmission SPVs for Rs 22.04 Crore

Total consideration: Rs 22.04 crore. Aggregate shares transferred: 100,000 equity shares.

Reader Takeaway: REC simplifies portfolio via SPV sales; transaction has negligible impact on company's overall financial net worth.

What just happened

REC Power Development and Consultancy Limited (RECPDCL), a subsidiary of REC Ltd, completed the sale of two project-specific special purpose vehicles (SPVs) on September 23, 2026. The entities were transferred to external bidders following a tariff-based competitive bidding process. Barmer HVDC Power Transmission Limited was acquired by Power Grid Corporation of India Limited for Rs 18.98 crore, while Sakoli Power Transmission Limited was acquired by Ashoka Buildcon Limited for Rs 3.06 crore.

Why this matters

These transactions reflect REC's strategy of executing power infrastructure projects through SPVs and subsequently transferring them to developers once the bidding process concludes. The company confirmed that these units contributed negligible amounts to its turnover and net worth in the previous financial year, meaning the core business remains unaffected. These are independent transactions and do not constitute related-party deals or a slump sale.

What changes now

Both SPVs are no longer under the control of RECPDCL or REC Ltd. The Share Purchase Agreements (SPA) have been fully executed, and the entire shareholding of 50,000 equity shares in each SPV has been handed over to the successful bidders.

Risks to watch

While these divestments are routine for REC's project development model, investors should monitor the company's ability to maintain a healthy pipeline of new SPV projects to sustain future growth in consultancy and development fee revenue.

Context metrics

• Transaction Date: September 23, 2026
• Total Consideration: Rs 22.04 crore
• Transaction Type: Competitive bidding process